Hungary’s central bank raises O/N, one-week collateralised loan rates by 95 bp to 1.85 pc

The Monetary Council of the National Bank of Hungary (NBH) decided to raise the rates for the central bank’s O/N and one-week collateralised loans by 95 basis points to 1.85 percent at a meeting on Tuesday.

The Council left the base rate and the O/N central deposit rate unchanged at 0.90 percent and -0.05 percent, respectively.

Meanwhile, central bank governor György Matolcsy unveiled a package of measures to help mitigate the economic fallout of the novel coronavirus outbreak.

The measures will be worth 3,000 billion forints (EUR 8.3bn), equalling 6 percent of GDP, Matolcsy said.

The central bank will make up to 1,500 billion forints of cheap and stable financing available to the SME sector in the framework of a programme dubbed Funding for Growth Scheme Go! It will include 500 billion forints that has not been drawn down under the NBH’s earlier launched FGS fix programme.